Facebook and Amazon.com partnered Tuesday in what could be one of the social network’s most important integrations yet. Such a partnership could also lay the groundwork for Facebook to get key pieces of data, so it can start to quantitatively value how social recommendations translate into sales. According to both companies they are not getting purchase history on specific individuals.
Now consumers will see products based on their friends’ reviews. This couples two very effective forms of recommendations: friends & online reviews. In fact, those two consistently rank as the top two most valued forms of product advice.
Now if Facebook can build out this partnership with Amazon, It can get key pieces of aggregated data back to study how product sales change in relation to social recommendations or ad campaigns, it can build models to show how financially valuable it is on average when a user “likes” a product or brand.